INTERNATIONAL
NATIONAL
The support of the State Government, according to the Indian Texpreneurs Federation (ITF), is essential for the future success of the spinning industry and the textile sector. ITF had addressed a letter to Thangam Thennarasu, the finance minister, requesting the appointment of a third-party financial research agency and the introduction of new technologies to the state’s textile and clothing industry. The goal of the external expert financial research agency, according to ITF convener Prabhu Dhamodharan, is to assess the level of stress in the industry and its related sectors. “The agency could create data and submit it to the Finance Ministry. The report should cover the present and immediate future demands in the domestic and export markets. The State Industries Department could prepare and present such a report,” he said. He noted that numerous cotton-growing states had begun spinning mills using cutting-edge technology and said that such advances would lower production costs while assisting in snatching export business with a costcompetitiveness. To prepare the state’s spinning mill industry for the next competition, the State Government should develop a new incentive-based programme. The programme must guarantee that the technology will remain current for the ensuing 15 years and maintain the competitiveness of the industry.
Source: Apparel Resources
Prime Minister Shri Narendra Modi will dedicate to the nation the International Exhibition-cumConvention Centre (IECC) complex at Pragati Maidan on 26th July, 2023. Prime Minister’s vision of having a world class infrastructure for hosting meetings, conferences and exhibitions in the country has led to the conceptualization of the International Exhibition-cumConvention Centre (IECC) at Pragati Maidan. The project, which revamped the old and outdated facilities at Pragati Maidan, was developed as a National project at a cost of about Rs 2700 crore. With a campus area of approximately 123 acres, the IECC complex has been developed as India’s largest MICE (Meetings, Incentives, Conferences, and Exhibitions) destination. In terms of the covered space available for events, the IECC Complex finds its place among the top exhibition and convention complexes in the world. The newly developed IECC complex at Pragati Maidan comprises of multiple state-of-the-art facilities including Convention Centre, Exhibition halls, amphitheaters etc. The Convention Centre is developed as the centerpiece of Pragati Maidan complex. It is a grand architectural marvel, designed to host large-scale international exhibitions, trade fairs, conventions, conferences, and other prestigious events. It is equipped with multiple meeting rooms, lounges, auditoriums, amphitheater and business centre, making it capable of hosting a wide range of events. Its majestic multi-purpose hall and plenary hall have a combined capacity of seven thousand people, which is larger than the seating capacity of the famous Sydney Opera House in Australia. Its magnificent Amphitheater is equipped with a seating capacity of 3,000 individuals. The architectural design of the Convention Centre building is inspired from Indian traditions and showcases India’s confidence and conviction in its past while also embracing modern facilities and way of life. The the shape of the building is derived from the Shankha (conch shell), different walls and facades of the Convention Centre depict several elements of India's traditional art and culture including ‘Surya Shakti’ highlighting India’s efforts in harnessing solar energy, ‘Zero to ISRO’, celebrating our achievements in space, Pancha Mahabhuta signifying the building blocks of universal foundation - Aakash (Sky), Vayu (Air), Agni (Fire), Jal (Water), Prithvi (Earth), among others. Also, various paintings and Tribal art forms from different regions of the country adorn the Convention Centre. Other facilities available in the Convention Centre include 5G-enabled fully Wi-Fi covered campus, 10G Intranet connectivity, interpreter room equipped with cutting-edge technology to support 16 different languages, advanced AV systems with huge-sized video walls, building management system ensuring optimal functionality and energy efficiency, light management system with dimming and occupancy sensors, state-of-the-art DCN (Data Communication Network) system, integrated surveillance system and energy-efficient centralized air conditioning system. Further, the IECC complex features a total of seven exhibition halls, each serving as a versatile space for hosting exhibitions, trade fairs, and business events. The exhibition halls are designed to accommodate a diverse range of industries and showcase products and services from around the world. These state-ofthe-art structures are a testament to modern engineering and architectural prowess. The development of the area outside the IECC is also thoughtfully designed that complements the beauty of the main complex and a testimony of careful planning and development that has gone into this project. The sculptures, installations, and murals showcase the rich cultural heritage of India; Musical Fountains adds an element of enchantment and spectacle; Water Bodies such as ponds, lakes, and artificial streams, enhance the tranquility and aesthetics of the area. The convenience of visitors is a priority at the IECC, reflected in the provision of over 5,500 vehicle parking spaces. The ease of access through signal-free roads ensures that visitors can reach the venue without any hassle. Also, the overall design prioritizes the comfort and convenience of attendees, facilitating seamless movement within the IECC complex. The development of the new IECC complex at Pragati Maidan will help in promotion of India as a global business destination. It will also play a vital role in boosting trade and commerce, leading to economic growth and job creation. It will support the growth of small and medium enterprises by providing them with a platform to showcase their products and services on a national and international stage. It will also facilitate knowledge exchange and encourage the dissemination of best practices, technological advancements, and industry trends. IECC at Pragati Maidan epitomizes India's pursuit of economic and technological excellence in the spirit of Aatmanirbhar Bharat and is a step towards building a New India.
Source: PIB
IFCI and Deloitte facilitated the consultation. “The ministry is committed to finalising the bidding documents and proceeding with the rebidding process at the earliest,” government officials said. Though the government is confident of re-auctioning the 20 Gwh soon, industry players who participated in the consultation say that if industry concerns are not taken into account the scheme will not see serious battery manufacturers in the play.“We have submitted our responses to the government. We are hopeful that the government would incorporate those changes. If it doesn't, more defaulters like Hyundai Global Motors would come,” said an industry source present at the meeting. According to sources, the industry is divided on the maximum capacity for which a company can bid. During the previous bidding, a company was allowed to bid for a minimum of 5 Gwh of ACCs manufacturing facility which can go up to a maximum of 20 Gwh.This time big players want that this clause should remain the same as they have plans to build huge gigafactories. On the other hand, smaller companies, want bids to start from 1 Gwh with a maximum cap of 5 Gwh. The industry has also urged the government to remove the clause of penalty from the scheme. At present, in case of a shortfall in either value addition or committed capacity, a penalty is applicable. If a company fails on both the parameter the quantum of the penalty increases.“Major battery producers in the country may refrain from the bids if the penalty is kept in the scheme,” another industry player present during the consultations said. With this auctioning process, prospective applicants can submit their bids to set up a domestic manufacturing facility for advanced chemistry cells, which will help them qualify for incentives under the ACC PLI scheme.During the first round of bids, out of the four companies that were declared bid winners, Rajesh Exports quoted an interest and got 5 Gwh capacity, followed by Hyundai Global Motors which was rewarded 20 Gwh of capacity. The third player was Ola Electric which was awarded another 20 Gwh and the fourth was Reliance New Energy Solar which wanted 20 Gwh but received the remaining 5 Gwh.ACCs are the new generation of advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required. These have major applications in electric vehicles, maintaining grid stability, solar rooftop, consumer electronics, etc. With India's commitment toward renewable energy and achieving net zero by 2070, energy storage is expected to play a crucial role in the overall energy ecosystem.
Source: Business-Standard
A three-day Textile Accessories Garment (TAG) Expo was inaugurated at Texvalley, an integrated textile marketing centre at Chithode, here on Monday. Minister for Handlooms and Textiles R. Gandhi and Minister for Housing and Urban Development S. Muthusamy, in the presence of MLAs E.V.K.S. Elangovan and A.G. Venkatachalam, inaugurated the expo that will be held till July 26. Organisers said the South India’s largest B2B expo was held ahead of Deepavali and festival seasons, and textile manufacturers and traders from various States were participating. As many as 200 stalls exhibiting various fabrics and fashion and latest trends in the textile industry were the key attractions. Also, buyers, wholesalers, agents and merchandisers, members of 150 associations were also participating. A fashion show would be held on Tuesday.
Source: The Hindu
The domestic dye, dye intermediates, and pigment (D&P) industry witnessed a challenging FY23 as it grappled with a decline in demand from its primary end-user, the textile industry, according to a report by CareEdge Ratings.The industry also faced significant hurdles due to volatile input costs, including raw materials, fuel, and freight, resulting in major players experiencing a moderation in total operating income (TOI) by over 5% and a contraction in operating profitability of around 400 basis points. A multitude of factors contributed to this downturn, including high inflation across major economies, disruptions stemming from the Russia-Ukraine war, and stiff competition from low-cost Chinese products. These elements collectively impacted the industry’s performance, leading to a challenging fiscal year for major players.Looking ahead to H1FY24, CareEdge Ratings expects that headwinds will persist, with subdued performance expected. However, a glimmer of hope shines on the horizon for H2FY24 as an anticipated revival in demand from the textile industry and stabilization of input prices could bolster the industry’s performance. CareEdge Ratings envisions a volume-driven recovery in TOI, approaching FY22 levels, coupled with a 100 to 150 basis points expansion in operating profitability compared to FY23. Despite the subdued performance, the solvency position of major players in the D&P industry is expected to remain relatively comfortable in FY24. This observation bodes well for their ability to manage capital expenditure and incremental working capital requirements. “The Dye, Dye Intermediates, and Pigment industry is poised for recovery after the challenges faced in FY23. The demand from the textile industry is expected to improve in H2FY24, though H1FY24 may remain subdued. This anticipated rebound should result in moderate volume growth and a slight improvement in profitability as input costs stabilize. Further, the major players in the industry are likely to maintain comfortable debt protection metrics with controlled leverage and stable interest rates. This positions them well to handle any capital expenditure or incremental working capital requirements," said Kalpesh Patel, Director at CareEdge Ratings.CareEdge Ratings‘ rated portfolio revealed a moderation with the Modified Credit Ratio (MCR) declining below unity during FY23. However, the credit risk profile of major players is expected to remain stable in the near to medium term, thanks to the expected improvement in the current fiscal year. Despite this positive outlook, smaller and mid-sized industry players with a more leveraged capital structure may continue to face vulnerability amid the ongoing headwinds.
Source: Live mint
About 100,000 reassessment notices issued by the income-tax (I-T) department in the past years -- where the income escaped from tax was above Rs 50 lakh -- will be concluded by March 2024, Union Finance Minister Nirmala Sitharaman said on Monday, assuring taxpayers of a transparent, objective, and friendly tax regime. Speaking at an Income Tax Day event in New Delhi, Sitharaman said that widening the tax base remained a priority, and that the tax collected or deducted at source (TCS and TDS) approach to “track and trace” the likely tax liabilities, along with campaigns and nudges to encourage people to come on board on taxes, would help. The finance minister emphasised that if income tax revenues were increasing, it was not because of the hike in rates, but due to “efficiency, plugging of leakages, and formalisation of the economy”. On tax notices, she said those were served in cases dating back to six years for misreporting of income and non-filing of returns The Finance Act 2021 made changes to the reassessment provisions. It lowered the time limit for the reopening of assessment to 3 years from 6 years earlier. However, if there is evidence of tax evasion of at least Rs 50 lakh, a notice can be issued within 10 years from the end of the relevant assessment year. It couldn’t be ascertained whether the notices mentioned by the finance minister were under the new or old regime of reassessment. She further said that as many as 55,000 one-time cases opened following the Supreme Court order had already been concluded by May. “The Central Board of Direct Taxes (CBDT) is not sitting over notices that have been issued, and any level of discretion is being played up or people gaming the system is not happening anymore,” the FM said, adding that it was no longer a “phishing expedition”. Talking about the various measures taken by the I-T department, Sitharaman said that tax rates had not gone up over the years, yet revenue had been constantly rising over the past three-four years. While the department is now transparent, objective and friendly, there is still “a lingering memory” of the use of discretion by a few officer She added that the I-T department had shown that it was capable of exceeding the Budget targets. “Tax buoyancy has been over one for the last six years, except for the pandemic year… Record 7.2 million income-tax returns received in one day… Average processing of returns has been reduced to 16 days; need to focus more on further automation of taxpayers' services,” Revenue Secretary Sanjay Malhotra said during the same event. CBDT Chairman Nitin Gupta said 50 per cent of the returns filed in the current year had already been processed. Gupta informed that 8 million refunds had already been processed this year. “We are growing at 16 per cent over last year in income tax collection. In the current year, 40 million income-tax returns have been filed already, which is 6.5 per cent higher than the previous year,” he said.
Source: Business-Standard
Indian exporters on Amazon's e-commerce exports programme Amazon Global Selling saw nearly 70 per cent year-on-year business growth during Prime Day, the company said. The exporters from tier-2 and tier-3 cities grew from 40 per cent on year to up to 75 per cent on year, with Panipat emerging at the top in terms of exporter growth followed by Indore and Jaipur (55 pc y-o-y), and Erode (40 per cent on year). The highest sale was grossed in the beauty category (125 per cent y-o-y), followed by apparel at 122 per cent on-year growth. Products in "home" category registered 81 per cent on year growth followed by 75 per cent on year growth in furniture and 52 per cent growth in kitchen products, in the two-day sale event on July 11 and 12 this year, Amazon India said. Japan emerged as a new high-growth destination for exports as buyers from North America, Europe, Middle East and Japan shopped for Indian export products. With more than 200 million Amazon Prime members globally, Prime Day has always been a key growth period for Indian exporters on Amazon Global Selling. This year, we saw thousands of exporters from across the country take lakhs of made in India' products to customers worldwide, said Bhupen Wakankar, Director Global Trade at Amazon India.
Source: Business-Standard
India is a Party to the United Nations Framework Convention on Climate Change (UNFCCC), and its Kyoto Protocol (KP), and the Paris Agreement (PA). As a Party to the UNFCCC, India periodically submits its National Communications (NCs) and Biennial Update Reports (BURs) to the UNFCCC which includes national Greenhouse Gas (GHG) inventory containing information on methane emissions. As per India’s third Biennial Update Report, India’s methane emissions in 2016 (excluding LULUCF) were 409 million tone CO e of which, 73.96% was from Agriculture sector, 14.46% from Waste sector, 10.62% from Energy sector and 0.96% was from Industrial Processes and Product Use sector. Under the Paris Agreement, India has submitted its Nationally Determined Contribution (NDC), which does not bind it to any sector specific mitigation obligation or action. The goal is to reduce overall emission intensity of its GDP and improve energy efficiency of its economy over time and at the same time protecting the vulnerable sectors of economy and segments of our society. However, India remains steadfast in its commitment in framing and implementing its actions to combat climate change. The ongoing measures to reduce methane emissions are as follows: i. The National Mission on Sustainable Agriculture (NMSA), implemented by Ministry of Agriculture and Farmers Welfare, involves climate resilient practices including methane reduction practices in rice cultivation. These practices contribute to substantial reduction of methane emissions. ii. The Indian Council of Agricultural Research (ICAR) under National Innovations in Climate Resilient Agriculture (NICRA) project has developed several technologies with mitigation potential for methane from rice viz. (a) System for Rice Intensification – The technique has potential to enhance rice yield from 36-49% with about 22-35% less water than conventional transplanted rice; (b) Direct Seeded Rice – The system reduces methane emissions as it does not involve raising nurseries, puddling and transplanting. Unlike transplanted paddy cultivation, standing water is not maintained in this system; and (c) Crop Diversification Programme – Methane emissions is avoided due to diversion of paddy to alternate crops like pulses, oilseeds, maize, cotton and agro forestry. iii. Capacity building programmes are conducted through Krishi Vigyan Kendras across the country for creating awareness on climate resilient practices. iv. The Department of Animal Husbandry and Dairying (DAHD) is implementing National Livestock Mission, which inter alia, includes Breed Improvement and Balanced Rationing. Feeding livestock with superior quality balanced ration is helping to reduce methane emissions from the livestock. v. Government of India promotes green fodder production, silage making, chaff cutting, and total mixed ration under National Livestock Mission with a view to reduce methane emissions from livestock. vi. Through initiatives like ‘The Gobar (Galvanizing Organic Bio-Agro Resources) –Dhan’ scheme and New National Biogas and Organic Manure Programme, cattle waste utilisation is being incentivised, in addition to production of clean energy invillages. The Gobardhan scheme, inter alia, supports biodegradable waste recovery and conversion of waste into resources and reduction of methane emissions. This information was given by Union Minister of State for Environment, Forest and Climate Change Shri Ashwini Kumar Choubey in a written reply in the Lok Sabha.
Source: PIB
India and the UK have concluded the 11th round of negotiations for a proposed free trade agreement (FTA) and the next round of talks will take place in the coming months, the commerce ministry said on Monday.India and the UK are working to iron out differences on issues like intellectual property rights (IPRs) and rules of origin under the agreement, negotiations for which were started in January 2021.”On July 18, the UK and India concluded the eleventh round of talks for the UK-India FTA. Technical discussions were held across nine policy areas over 42 separate sessions. They included detailed draft treaty text discussions in these policy areas,” it said.On July 10-11, Commerce and Industry Minister Piyush Goyal visited the UK as part of the 11th round of the negotiations.He met with Kemi Badenoch MP, the Secretary of State for Business and Trade, and Nigel Huddleston MP, the Minister of State for International Trade, where they discussed ways to make progress on the negotiations and wider trade and investment opportunities for the UK and India.Commerce Secretary Sunil Barthwal, also visited the UK during the round. He met with senior UK trade officials and took stock of the progress made in the 11th round of negotiations.The 12th round of negotiations is due to take place in the coming months.The negotiations between the two countries for the agreement cover as many as 26 policy areas/chapters. Investment is being negotiated as a separate agreement (bilateral investment treaty) between India and the UK and it would be concluded simultaneously with the free trade agreement.The two countries last year missed the deadline due to economic and political crises in the UK.The Indian industry is demanding greater access for its skilled professionals in the UK market and entry of Indian whiskey by removal of conditions pertaining to the three-year minimum maturation period. The UK is also seeking a significant cut in the import duties on Scotch whisky. Britain is also looking for more opportunities for UK services in the Indian markets.The bilateral trade between the countries has increased to USD 20.36 billion in 2022-23 from USD 17.5 billion in 2021-22.
Source: Financial Express
As per the National Sample Survey (NSS) 73 Round report (July 2015 to June 2016), 19.5 per cent of the total unincorporated non-agricultural proprietary enterprises were owned by women, employing 22 to 27 million people. As per the report “Decoding Government Support to Women Entrepreneurs in India’ on NITI Aayog website, published in October 2022, women’s economic contribution in India accounts for 17% of the GDP. There are no official reports on global ranking of Women entrepreneurship. However, a private study “Mastercard Index of Women Entrepreneurs 2021” ranks India at 57th position out of a total of 65 countries. The Index uses 12 indicators to create three components: women’s’ advancement outcomes; knowledge assets and financial access and entrepreneurial supporting conditions for constructing the Index. The Report of the Expert Committee on Micro, Small and Medium Enterprises, published by the Reserve Bank of India in June 2019 has identified access to credit as one of the major challenges faced by MSMEs, including women owned MSMEs. To encourage entrepreneurship among women, the Ministry of Micro, Small and Medium Enterprises (MSME) implements various schemes. The Ministry implements Prime Minister’s Employment Generation Programme (PMEGP), which is a major credit-linked subsidy programme aimed at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector by helping traditional artisans and rural/urban unemployed youth. For beneficiaries belonging to special categories such as Scheduled Caste/Scheduled Tribe/OBC /minorities/women, ex-serviceman, physically handicapped, NER, Hill and Border areas, etc., higher subsidy is given. The Credit Guarantee Fund Trust for Micro, and Small Enterprises (CGTMSE),which was jointly set up by the Ministry of MSME, Government of India and Small Industries Development Bank of India to strengthen credit delivery system and to facilitate flow of credit to the MSE sector, create access to finance for unserved, under-served and underprivileged, making availability of finance from conventional lenders to new generation entrepreneurs, provides guarantee cover to collateral and/or third party guarantee free credit facilities extended by eligible Member Lending Institution [MLIs] to Micro and Small Enterprises. CGTMSE has increased the extent of guarantee coverage of credit to 85% for women entrepreneurs. As an additional concession to Women Entrepreneurs, CGTMSE has reduced the Annual Guarantee Fee by 10%. The Ministry also implements several other schemes for promotion and development of MSMEs, including women owned MSMEs, namely, Micro and Small Enterprises Cluster Development Programme (MSE-CDP), Tool Rooms & Technology Centres, Scheme of Fund for Regeneration of Traditional Industries (SFURTI), Procurement and marketing Support Scheme, Entrepreneurship and Skill Development Programme (ESDP) etc. This information was given by Minister of State for Micro Small and Medium Enterprises, Shri Bhanu Pratap Singh Verma in a written reply to the Rajya Sabha.
Source: PIB
INTERNATIONAL
For the garment sector to experience any genuine benefits, the Joint garment Association Forum (JAAF) emphasised the need to go beyond the current export quota in the India-Sri Lanka Free Trade Agreement (ISFTA). While Sri Lanka is now allowed to export eight million pieces of ready-made clothing to India duty-free, the apex body of Sri Lanka apparel is confident that this will be increased since FTAs have the potential to provide significant trade prospects for both nations. “Unfortunately, the apparel industry is showing a decline of 20 percent in exports of textiles and apparel, driven mainly by a reduction in demand in the primary apparel export markets. We believe that India, as our closest trading partner, could offer a lifeline to the country, whilst also benefiting Indian fabric manufacturers,” said the JAAF in a statement. It was noted that the role of the merchandise export sector has never been more crucial as Sri Lanka recovers from the biggest economic crisis since independence. Sri Lanka’s export commerce has increased 18 times since the ISFTA’s implementation, from US $ 47 million in 1999 to US $ 815 million in 2021. Under the ISFTA, Sri Lanka has also been able to market a variety of goods. Furthermore, the FTA provisions are used in around 70% of Sri Lanka’s exports to India. Despite all of these achievements, the eight million export quota, according to the JAAF, prevents the garment industry from fully benefiting from the ISFTA. It was cited as an example of how Sri Lanka imports more from India than it does export. While the overall revenue from garment exports to India in 2022 was only US $ 149.28 million, US $ 146.47 million in yarn, US $ 311.78 million in knitted fabrics, and US $ 278.38 million in woven fabrics were imported from India. However, the JAAF welcomed the continuing FTA negotiations between India and Sri Lanka and is optimistic that they will be advantageous for both nations. The JAAF asked that the eight million piece cap be lifted while the FTA was still being finalised so that Sri Lanka could utilise it as a way to enhance its garment exports to India.
Source: Apparel Resources
US soccer player Megan Rapinoe is being urged by Labour Behind the Label, a UK organisation dedicated to labour rights in the global textile sector, to put pressure on her sponsor, Nike, to compensate garment workers in Cambodia and Thailand. This week, the organisation launched a new campaign. A pre-written letter addressed to Rapinoe and other American football stars Tobin Heath, Christen Press, and Meghan Klingenberg is requested by the campaign from supporters. Two employee categories are mentioned in the message. The first was a group of 1,284 former workers at the Violet Apparel plant in Cambodia who were fired ‘without notice’ after the facility shut down ‘unexpectedly’ in July 2020, according to Labour Behind the Label. The workers, according to the campaigners, were ‘robbed of legally-owed compensation’ totaling US $ 1.4 million, and many are ‘still struggling with debts’ from that period. More than 3,000 employees at Nike supplier Hong Seng Knitting in Thailand, according to Labour Behind the Label, were allegedly denied ‘legally owed’ vacation money during the pandemic. The campaign group claims the manufacturer threatened the workers who are owed US $ 800,000 and refused to pay them. The campaign makes reference to Rapinoe and her colleagues’ fight for the U.S. Women’s National Team to get equal pay. Four months after the team sued the U.S. Soccer Federation for salary discrimination, Nike released an advertisement hailing the team’s World Cup success and backing the players’ demands, according to Labour Behind the Label.
Source: Apparel Resources
